Merrill Lynch & Co. controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2009
MBIA litigation over mortgage CDOs
MBIA alleged that Merrill misrepresented the quality of mortgage-related CDOs underlying credit-default-swap insurance contracts. A court later rejected most of the claims while allowing a breach-of-contract claim to proceed at that stage.
2009
Rabobank litigation concerning the Norma CDO
Rabobank sued Merrill over the Norma CDO and alleged that the transaction involved problematic asset selection and conflicts connected with the mortgage-securities market.
2007
Subprime mortgage and CDO losses
Merrill suffered extensive losses from mortgage-backed securities and CDO exposures during the subprime crisis. Its involvement included underwriting CDOs, retaining related positions and owning First Franklin, a subprime mortgage lender.
1994
Orange County investment losses and settlement
Orange County, California, filed for bankruptcy after losses associated with a leveraged investment portfolio managed by county treasurer Robert Citron. Merrill was among the securities firms sued and agreed in 1998 to pay $400 million to settle the county's claims without admitting liability.